American Property Casualty Insurance Association: Virginia Senate Passes Harmful Legislation That Could Increase Auto Insurance Costs for Virginians

RICHMOND, Virginia, Feb. 16 -- The American Property Casualty Insurance Association issued the following news release:

The American Property Casualty Insurance Association (APCIA) issued the following statement, attributed to its vice president of state government relations Nancy Egan, regarding the passage of Senate Bill 256 by the Virginia Senate. The bill passed with 25 in favor and 15 opposing.

"APCIA is extremely concerned about the potential impact Senate Bill 256 will have on auto insurance costs for Virginia residents and we are disappointed the Virgnia Senate passed this harmful bill. Even though the bill passed, there were many Senators who voted against the bill and expressed concerns about its impact. If this bill is enacted, Virginians could see an estimated 19 percent or higher increase in annual premiums based on a 2022 independent actuarial study of similar legislation.

"Virginians are already dealing with rising auto insurance costs due to inflation, supply chain issues, and the increasing cost of medical care and auto repairs. Over the last five years, auto insurance rates have increased 36.2 percent. Senate Bill 256 could cause auto insurance costs to spike even higher.

"This bill benefits plaintiff lawyers by putting more money in their pockets at the expense of consumers. The bill will encourage litigation, which drives up claims costs and impacts the cost of insurance for everyone.

"As the bill crosses over to the House, we urge House members to protect Virginians from higher auto insurance costs by voting no on Senate Bill 256."

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions-protecting families, communities, and businesses in the U.S. and across the globe.